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Agreement for compromise between the employer and workman for payment of compensation under workmen's compensation act



    What is Agreement for compromise between the employer and workman for payment of compensation under workmen's compensation act?

    A compromise agreement is a legally binding agreement between a business and an employee under which the employee agrees to settle their potential claims and in return the employer will agree to pay financial compensation. Sometimes the agreement will include other things of benefit to the employee, such as an agreed reference letter.

    Why is Agreement for compromise between the employer and workman for payment of compensation under workmen's compensation act required?

     

    An employee can make a claim against a business under both their contract of employment and under statute. These claims may arise:

    • on recruitment;

    • during employment; or

    • when their employment has been terminated.

    In many cases, a business may want to make a payment to an employee in return for an effective waiver of their potential claims. Businesses can enter into an agreement with an employee to settle potential claims when they are still working for the business, but in most situations, their employment will have ended (or be about to end). Although it is usual for compromise agreements to be entered into where employment has terminated (or is about to terminate), it is possible to enter into one where employment is continuing. Although it is usual for compromise agreements to be entered into where employment has terminated (or is about to terminate), it is possible to enter into one where employment is continuing.

    What should a Agreement for compromise between the employer and workman for payment of compensation under workmen's compensation act cover?

     

    The contents of a compromise agreement are largely at the discretion of the business and the employee involved. Examples of common clauses include:

    1. Compensation for loss of employment.

    2. Contribution to legal fees.

    3. Waiver of claims by the employee, including warranty that the claims listed are the only claims which the employee has against the employer.

    4. Re-assertion or modification of existing restrictive covenants.

    5. Indemnity from employee in relation to tax and National Insurance Contributions.

    Documents Required for Agreement for compromise between the employer and workman for payment of compensation under workmen's compensation act

    No specific documents are required to execute or draft a simple compromise agreement. However, one must scrutinize the identity proofs of the parties entering into the agreement. Moreover, one should also scrutinize the documents relating to the claims being settled by way of the simple compromise agreement.

    Procedure for Agreement for compromise between the employer and workman for payment of compensation under workmen's compensation act

    No set procedure is applicable in the making of a compromise agreement. Once the agreement has been drafted by a lawyer, it should be specifically and carefully read by both the parties to the agreement. Any necessary changes required to be made shall be carried out and once the agreement is finalised, it shall be signed by both the parties along with the requisite witnesses. The agreement is then legally binding when it is printed on judicial stamp paper/e-stamp paper and signed by both the parties. The stamp paper value depends on the particular State in which it is executed. Each party should thereafter keep a signed copy of the Agreement.

    How can a lawyer help to draft Agreement for compromise between the employer and workman for payment of compensation under workmen's compensation act?

    While drafting agreements, it is important to know as to what terminology should be used while drafting the same as a small ambiguity in the terms can also jeopardize the claim of the parties. This is why it is crucial to have a documentation lawyer to assist you with the drafting an agreement. Being an expert in the area of documentation law, a documentation lawyer knows the nitty-gritty of the legal procedures and the requirements involved in drafting an agreement. With the experience attained in the field, he/she can guide you with the right advice while entering into an agreement and can make sure that such mistakes are eliminated that cannot be resolved even through further legal procedures.

  • Disclaimer: The information contained in the sample document is general legal information and should not be construed as legal advice to be applied to any specific factual situation. Any use of the Site or document format DOES NOT create or constitute a solicitor-client relationship between LawRato or any employee of or other person associated with LawRato and a user of the Site. The information or use of documents on the Site is not a substitute for the advice of a lawyer.

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